Analysis of the Keynesian Theory of Employment and Sectoral Job Creation: The Case of the South African Manufacturing Sector

• Autorzy: Thomas Habanakize , Paul-Francois Muzindutsi
• Języki publikacji: EN

Abstrakty

EN

The manufacturing sector is one of the backbones of the South African economy, and yet is one of the economic sectors facing challenges in job creation. This study analysed the long-run and short-run effects of aggregate expenditure components on job creation in the South African manufacturing sector. A Vector Autoregressive (VAR) with Johansen co-integration approach was used to analyse quarterly data from 1994 to 2015. The findings are that there is a long-run relationship between aggregate expenditure and job creation in the South African manufacturing sector, with government and investment spending being the major components of aggregate expenditure that create jobs in the South African manufacturing sector. Conversely, consumption spending destroys jobs in the manufacturing sector, while net exports have no significant effect on job creation. The short-run relationship between variables was not significant. Recommendations are that more effort should be put into investment spending, and government should spend more on investment than on consumption spending - in order to increase job creation in the manufacturing sector.(original abstract)

Słowa kluczowe

EN

Keynesian employment theory; Job creation; Unemployment; Labour market

PL

Keynesowska teoria zatrudnienia; Tworzenie miejsc pracy; Bezrobocie; Rynek pracy

• Czasopismo: Folia Oeconomica Stetinensia
• Rocznik: 2018
• Numer: vol. 18, iss. 1
• Strony: 123--143

Twórcy

autor

Thomas Habanakize

• School of Economic Sciences North-West University, South Africa

autor

Paul-Francois Muzindutsi

• School of Accounting, Economics and Finance University of KwaZulu-Natal University Road Westville, South Africa

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Identyfikatory

DOI

10.2478/foli-2018-0010